CSD publishes technical specifications for CSDR

UniCredit Bank S.A.
Summary: 
CSD sent to its participants the technical specifications related to the second stage of changes in its system, based on CSDR requirements
Thu, 23/04/2020

Depozitarul Central (CSD) released to the market the technical specifications associated to its system – Arena Post-Trading - based on the changes made in the context of CSDR implementation. The aim of the changes is to improve certain technical processes and to prepare for application of the requirements on settlement discipline according to CSDR. This is the second stage of CSDR implementation, as per the initial announcement made by CSD at the end of October 2019.

The main specifications are:

1. The matching will be available in real time, throughout the operating program. Mandatory matching fields will be in place.

2. Tolerance levels will be implemented, in line with CSDR. The matching will take into account the amount to be settled from the seller's instruction, in the tolerance limits provided by ECB

3. Linkage mechanism will be available for conditioning the settlement and establishing the settlement order.

    The types of links that can be used by the participants to establish the settlement order will be:

     - BEFO (before) - the settlement of the instruction that has this indicator, is made before the settlement of the instruction with which it is linked;

     - AFTE (after) - the settlement of the instruction that has this indicator, is made after the settlement of the instruction with which it is linked;

     - WITH (all or none) - the settlement of the instruction that has this indicator, is performed simultaneously with the settlement of the instruction with which it is linked

4. Hold & Release - through this mechanism, instructions are stopped from settlement ("Hold") or transmitted for settlement ("Release") after being put on "Hold”

5. Bilateral Cancellation - will be allowed for unsettled instructions that have gone through the matching process

6. Other technical specifications regarding the communication means, such as: Arena PT platform, SWIFT, file upload

7. SWIFT Manual with technical requirements and examples of messages 

Impact on investors: Technical preparations at CSD in order to comply with the CSDR requirements. Investors will be able to use the new features implemented in Romanian market.